AMD rises on strong demand, promises more chips in 2027

4.4 Investments

Oct 6, 2026

AMD’s chip demand exceeds supply, with a major boost expected in 2027. Shares hit record highs as analysts raise targets, fueled by AI growth and strong market momentum.

AMD is currently experiencing chip demand that surpasses its production capacity, even after planned increases in 2026. The company anticipates a significant supply boost in 2027 to address these shortages. CEO Lisa Su has highlighted the need for collaboration among artificial intelligence companies to foster innovative and secure systems. A recent agreement with OpenAI involves deploying 6 gigawatts of AMD GPUs, but its success depends on both AMD’s stock price and timely chip delivery—both of which are influenced by ongoing supply chain bottlenecks. Despite these challenges, AMD shares have surged to $633.91, nearing their annual high, and the company’s market capitalization now exceeds one trillion dollars after a remarkable 285% increase over the past year. Wall Street firms such as Stifel and Mizuho have raised their price targets for AMD to $700 and $705, respectively, citing the artificial intelligence boom and strong expectations for MI450 platform revenues. Analysts note that AMD’s growth is currently limited by infrastructure and DRAM availability, rather than demand.